Precipio Announces its Q2-2025 Financial Results
Precipio (NASDAQ: PRPO) reported strong Q2-2025 financial results, with total revenues reaching $5.7M, representing a 27% YoY increase and 15% QoQ growth. The company's Pathology Services division saw an 18% QoQ increase, while Product revenues grew 23% QoQ.
Key financial metrics show significant improvement with Adjusted EBITDA of ($78K), an 87% improvement YoY, and cash used in operations decreased 71% YoY to $148K. Overall gross margins improved from 39% to 43% YoY, despite a temporary decline in Product division margins from 50% to 44% due to strategic investments in expansion.
Management expects to achieve positive cash flow and a debt-free balance sheet by year-end, following the completion of the Change Healthcare loan repayment.
Precipio (NASDAQ: PRPO) ha riportato solidi risultati finanziari nel secondo trimestre 2025, con ricavi totali pari a $5.7M, in aumento del 27% su base annua e del 15% rispetto al trimestre precedente. La divisione Pathology Services ha registrato un aumento del 18% QoQ, mentre i ricavi da prodotti sono cresciuti del 23% QoQ.
I principali indicatori mostrano miglioramenti significativi: l'Adjusted EBITDA 猫 stato di ($78K), con un miglioramento dell'87% rispetto all'anno precedente, e la liquidit脿 utilizzata nelle attivit脿 operative 猫 diminuita del 71% YoY a $148K. Le marginalit脿 lorde complessive sono salite dal 39% al 43% su base annua, nonostante una flessione temporanea delle marginalit脿 nella divisione Prodotti dal 50% al 44% dovuta a investimenti strategici per l'espansione.
La direzione prevede di raggiungere un flusso di cassa operativo positivo e un bilancio privo di debiti entro la fine dell'anno, dopo il completamento del rimborso del prestito a Change Healthcare.
Precipio (NASDAQ: PRPO) report贸 s贸lidos resultados financieros del segundo trimestre de 2025, con ingresos totales de $5.7M, un incremento del 27% interanual y un crecimiento del 15% trimestre a trimestre. La divisi贸n de Pathology Services experiment贸 un aumento del 18% QoQ, mientras que los ingresos por Productos crecieron un 23% QoQ.
Los indicadores clave muestran mejoras importantes: el EBITDA ajustado fue de ($78K), una mejora del 87% respecto al a帽o anterior, y el efectivo utilizado en operaciones se redujo un 71% YoY hasta $148K. El margen bruto global mejor贸 del 39% al 43% interanual, pese a una ca铆da temporal en el margen de la divisi贸n de Productos del 50% al 44% debido a inversiones estrat茅gicas para la expansi贸n.
La direcci贸n espera lograr flujo de caja positivo y un balance libre de deuda para fin de a帽o, tras completar el reembolso del pr茅stamo con Change Healthcare.
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瓴届榿歆勳潃 Change Healthcare 雽�於� 靸來櫂 鞕勲 頉� 鞐半旯岇 順勱笀頋愲 頋戩瀽 鞝勴櫂瓿� 氍挫皑鞛� 鞛甑“ 雼劚鞚� 旮半寑頃橁碃 鞛堨姷雼堧嫟.
Precipio (NASDAQ: PRPO) a publi茅 de solides r茅sultats pour le deuxi猫me trimestre 2025, avec des revenus totaux de $5.7M, soit une hausse de 27% en glissement annuel et une croissance de 15% d'un trimestre 脿 l'autre. La division Pathology Services a progress茅 de 18% QoQ, tandis que les revenus Produits ont augment茅 de 23% QoQ.
Les indicateurs financiers cl茅s se sont nettement am茅lior茅s : l'EBITDA ajust茅 s'茅tablit 脿 ($78K), soit une am茅lioration de 87% par rapport 脿 l'ann茅e pr茅c茅dente, et la tr茅sorerie utilis茅e par les activit茅s op茅rationnelles a diminu茅 de 71% YoY pour atteindre $148K. La marge brute globale est pass茅e de 39% 脿 43% en glissement annuel, malgr茅 une baisse temporaire de la marge de la division Produits, de 50% 脿 44%, li茅e 脿 des investissements strat茅giques pour l'expansion.
La direction pr茅voit d'atteindre un flux de tr茅sorerie positif et un bilan sans dettes d'ici la fin de l'ann茅e, apr猫s le remboursement du pr锚t de Change Healthcare.
Precipio (NASDAQ: PRPO) meldete starke Finanzergebnisse f眉r Q2 2025: die Gesamtums盲tze beliefen sich auf $5.7M, ein Anstieg von 27% gegen眉ber dem Vorjahr und ein Wachstum von 15% gegen眉ber dem Vorquartal. Die Pathology Services鈥慡parte verzeichnete ein 18%iges QoQ-Wachstum, die Produktums盲tze stiegen um 23% QoQ.
Wesentliche Kennzahlen verbesserten sich deutlich: Das Adjusted EBITDA lag bei ($78K), eine Verbesserung von 87% im Jahresvergleich, und der in der operativen T盲tigkeit gebundene Cashflow sank um 71% YoY auf $148K. Die Bruttomargen insgesamt stiegen von 39% auf 43% im Jahresvergleich, trotz eines vor眉bergehenden R眉ckgangs der Margen in der Produktsparte von 50% auf 44% aufgrund strategischer Investitionen zur Expansion.
Das Management rechnet damit, nach Tilgung des Change Healthcare鈥慏arlehens bis zum Jahresende einen positiven Cashflow und eine schuldenfreie Bilanz zu erreichen.
- Revenue growth of 27% YoY to $5.7M
- Adjusted EBITDA improved 87% YoY to ($78K)
- Cash burn reduced 71% YoY to $148K
- Overall gross margins improved from 39% to 43% YoY
- Pathology Services division grew 17% QoQ to $5.0M
- No substantial capital expenditures needed for continued growth
- Product division gross margins declined from 50% to 44% YoY
- Still operating at negative Adjusted EBITDA of ($78K)
- Remaining Change Healthcare loan needs to be repaid by year-end
Insights
Precipio demonstrates strong Q2 revenue growth and significant improvement in cash burn, moving closer to profitability.
Precipio's Q2-2025 results show substantial operational progress with revenues reaching
The financial metrics tell a compelling turnaround story. Adjusted EBITDA improved dramatically to
The gross margin story is nuanced but overall positive. Company-wide margins improved from
Management's claim that Precipio is on track to achieve positive cash flow by year-end appears credible based on the current trajectory. With the impending completion of loan repayments to Change Healthcare and consistent growth in both divisions, the company's financial health is steadily improving. Notably, the Pathology Services division is operating below capacity, suggesting further growth can be accommodated without significant capital expenditure, which should drive continued margin expansion.
Conference call to follow tomorrow, August 14 at 5 PM EST
NEW HAVEN, Conn., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company听听), filed its 10-Q report today. The following are the highlights of the Company鈥檚 financial performance and outlook for 2025.
鈥淵et another quarter of revenue growth in both company divisions, along with overall gross margin improvement, has led to an improved cash performance for the Company. With the remaining repayment of the Change Healthcare loan to be completed by the end of the year, and continued strength in both revenue and margin growth, management believes that the Company is on track to end the year as a cash flow positive business, and with a debt-free, strong balance sheet,鈥� said Ilan Danieli, Precipio鈥檚 CEO.
Q2-2025 Financial Results:
- Revenues. Q2-2025 revenues reached
$5.7M , representing a27% increase YoY from$4.4M in Q2-2024, and a QoQ increase of15% from Q1-2025. Pathology services revenue increased18% from the prior quarter. Revenues from Product customers increased23% from the prior quarter (this comparison excludes fees of$145 K in Q1-2025 from a special project with a pharmaceutical company). - Adjusted EBITDA. Q2-2025 Adjusted EBITDA was (
$78 K) vs ($609 K) YoY, a significant improvement of87% resulting from both revenue growth and cost management initiatives. - Cash flow. Cash used by operations (net of Change Healthcare transactions and the Covid-related Employee Retention Credit) decreased from
$516 K in Q2-2024, to$148 K in Q2-2025, an improvement of71% YoY.
Products Division Summary:
We are seeing clear momentum in our products division, driven by continued progress with our distributor network and a growing pipeline of customers at various stages of the sales and onboarding process. Product revenues demonstrated a strong rebound this quarter, fueled by the return of two customers to full operational volume and the onboarding of a new customer.
Additional revenue growth came organically from existing customers who expanded their test offerings by adding new HemeScreen panels, reinforcing both the value of our platform and the scalability of our product portfolio.
Pathology Services Division Summary:
Pathology Services revenue increased by approximately
Gross margins, operating expenses:
Gross margin analysis:
- Product鈥檚 division gross margins YoY were
44% in Q2-2025 and50% in Q2-2024. This decline of6% is due to a number of factors: First, a recent increase in rent expense following the Company鈥檚 expansion into a larger space to support future growth. Management views this as a strategic investment in scaling operations and expects margins to improve as revenue continues to grow and fixed costs are absorbed more efficiently. Second, an increase in depreciation expense due to the purchase of manufacturing-related equipment. These capital expenditures are aligned with our long-term strategy to enhance production capacity, improve operational efficiency, and support the anticipated growth of our Products division. Moreover, Product economics are highly scalable; for example, an increase of less than$100,000 in product revenue will increase gross margins by over6% , returning to prior quarter margin level. - Pathology Services division gross margins have increased YoY from
37% to43% , The margin increase is due to increased case volume this quarter, as well as improved case mix towards more profitable tests run in our lab - Overall, the Company鈥檚 gross margin has increased YoY from
39% to43% .
EBITDA and Adjusted EBITDA Reconciliation and Explanation
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a non-GAAP financial measure that is widely used to evaluate operational performance. Management believes Adjusted EBITDA provides investors with a useful perspective on the company鈥檚 ongoing financial health, by also eliminating (a) unusual non-operating income and expense and (b) non-cash charges for employee stock option costs.
Below is a reconciliation of Net Income, EBITDA and Adjusted EBITDA for the second quarter of 2025 and 2024:
| ($ in millions, Unaudited) | Q2-2025 | Q2-2024 | ||||
| Net income/(loss) (GAAP) | 听 | 听 | ||||
Adjustments to net income/(loss): | 听 | 听 | ||||
| Interest expense, net | 听 | 听 | ||||
| Income taxes | 听 | 听 | ||||
| Depreciation | 听 | 听 | ||||
| Amortization of intangibles | $0.2 | 听 | $0.2 | 听 | ||
| EBITDA (non-GAAP) | 听 | 听 | ||||
Further Adjustments to EBITDA: | 听 | 听 | ||||
| Stock-based compensation expense | 听 | 听 | ||||
| Other non-operating (income) expenses, net | $(0.9) | 听 | $0 | 听 | ||
| Adjusted EBITDA (non-GAAP) | 听 | 听 | ||||
Note: The full unaudited condensed consolidated financial statements, including the balance sheet and statement of cash flows as of and for the three and six months ended June 30, 2025 and 2024, are included in the Company鈥檚 Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on or before August 14, 2025, which is available on the SEC鈥檚 website at v and on the Company鈥檚 investor relations website.
Shareholder Conference Call:
At 5:00 pm ET on August 14, 2025, the Company will host its quarterly shareholder call where management will provide more details as to the Company鈥檚 quarterly performance and outlook going forward. Please join us by dialing in at 800.717.1738.
About Precipio
Precipio is a healthcare biotechnology company focused on cancer diagnostics. Our mission is to address the pervasive problem of cancer misdiagnoses by developing solutions in the form of diagnostic products and services. Our products and services deliver higher accuracy, improved laboratory workflow, and ultimately better patient outcomes, which reduce healthcare expenses. Precipio develops innovative technologies in our laboratory where we design, test, validate, and use these products clinically, improving diagnostic outcomes. Precipio then commercializes these technologies as proprietary products that serve the global laboratory community and further scales Precipio鈥檚 reach to eradicate misdiagnosis.
Availability of Other Information About Precipio
For more information, please visit the Precipio website at听 or follow Precipio on X (formerly Twitter) () and (Precipio) and on . Investors and others should note that we communicate with our investors and the public using our company website (), including, but not limited to, company disclosures, investor presentations and FAQs, Securities and Exchange Commission filings, press releases, public conference call transcripts and webcast transcripts, as well as on X and LinkedIn. The information that we post on our website or on X or LinkedIn could be deemed to be material information. As a result, we encourage investors, the media and others interested to review the information that we post there on a regular basis. The contents of our website or social media shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains 鈥渇orward-looking statements鈥� within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the targets set herein and related timing. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, adjusted EBITDA, plans, objectives, expectations, growth or profitability and our potential to reach financial independence are forward-looking statements based on management鈥檚 estimates, beliefs, assumptions and projections. Words such as 鈥渃ould,鈥� 鈥渕ay,鈥� 鈥渆xpects,鈥� 鈥渁nticipates,鈥� 鈥渨ill,鈥� 鈥渢argets,鈥� 鈥済oals,鈥� 鈥減rojects,鈥� 鈥渋ntends,鈥� 鈥減lans,鈥� 鈥渂elieves,鈥� 鈥渟eeks,鈥� 鈥渆stimates,鈥� 鈥減redicts,鈥� and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions based on management鈥檚 current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed under the caption 鈥淩isk Factors鈥� in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and our other reports filed with the U.S. Securities and Exchange Commission. Any such forward-looking statements represent management鈥檚 estimates as of the date of this press release only. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Inquiries: [email protected] +1-203-787-7888 Ext. 523
FAQ
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